The plan is significantly cheaper than Netflix’s ad-free offerings, at $6.99 per month in the US. In the past year, the company implemented several initiatives aimed at adding subscribers, including a password-sharing crackdown that pushed password “borrowers” into creating their own subscriptions and introducing an advertising-supported subscription tier for $6.99. Password sharing and Netflix’s foray into ads Overall, Netflix now has a record number of subscribers at 260.3 million.Īnd investors seem to be cheering: Netflix’s stock jumped more than 7% in after-hours trading Tuesday. While Netflix added 1.2 million paid subscribers in the fourth quarter in the US, much of the strongest subscriber growth came internationally from Europe and Asia. The company added more than 13 million subscribers for the quarter, compared to Wall Street’s expectation of 8.7 million. The Associated Press contributed to this report.įor the latest news, weather, sports, and streaming video, head to KXAN Austin.Netflix announced a major boost in sign-ups in the fourth quarter on Tuesday. In an apparent effort to rebuild its library of original programming after everyone returns to work, Netflix said it expects to spend about $17 billion on TV series and films next year. Revenue in the third quarter was ultimately in line with expectations, Netflix said, despite a “challenging” six months that included a WGA and SAG-AFTRA strike. “The cancel reaction continues to be low, exceeding our expectations, and borrower households converting into full-paying memberships are demonstrating healthy retention,” the company said. The streamer told shareholders the effort has been working. Netflix has picked up more than 16 million subscribers through the first nine months of the year, already eclipsing the 8.9 million subscribers that it added all of last year. The increase is arguably tied to the company’s recent efforts to crack down on password sharing, forcing people who were sharing an account across many households to start paying more. In October, the company revealed it had earned $1.68 billion, or $3.73 per share, a 20% increase from the same time last year while revenue climbed 8% to $8.54 billion. Others called for Netflix to add better content to its library. “You raised prices last March, and I wake up to an email notification that now you’re raising them AGAIN? Read the room, man,” an X (formerly Twitter) user wrote. “Thats all netflix does anymore, less content and endlessly raising the prices,” one user on Reddit wrote. Some Instagram and Facebook users can get rid of ads for $10. When it raised its prices in early 2022, Netflix said the increase was necessary so they could “continue to offer a wide variety of quality entertainment options.”Īs expected, the newest price hike hasn’t been well received. The company has defended its price hikes in the past, calling their starting price - the $6.99 “Standard with ads” plan - “extremely competitive” and “much less than the average price of a single movie ticket.” Netflix didn’t immediately respond to Nexstar’s request for comment. Netflix users on impacted plans say they began receiving emails this week notifying them of the changes, which are reportedly coming in early December. The pricing of Netflix’s cheapest option, which includes ads, will remain at $6.99 and the “Standard” tier will stay at $15.49. Each option is now $2 more expensive than it used to be, $11.99 for “Basic” and $22.99 for “Premium.” The new price hike is hitting Netflix’s “Basic” and “Premium” tiers. ‘Strong’ El Niño winter coming: Here’s where we could see more snow More expensive tiers allow customers to stream on more devices and add members in other households. Netflix has three pricing tiers available to customers: An option with ads, “Standard” and “Premium.” Some customers are also grandfathered into a “Basic” plan, but it’s not an option people can choose now. Netflix does however list the new prices on its website, affecting new subscribers.
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